LB Finance records Rs. 2.53 b pre-tax profit

LB Finance PLC recorded its 2012/13 financial results, highlighting yet another outstanding year of phenomenal highs.

Income swelled by 40.68% over the previous year, to Rs. 11.17 billion during 2012/13. Interest income expanded by 41.49% to reach Rs. 10.32 billion during the year.The company's pre-tax profit marginally increased by 3.63% to Rs. 2.53 billion, due to the company's operational strategies and its impressive lending portfolio, stemmed mainly from leasing and gold loans.

Overall the post-tax profit was Rs. 1.70 billion, despite many challenges in the economic environment.Managing Director Sumith Adhihetty said that his team is happy with the company's performance in what has been described as a difficult year for the economy.The company's product portfolio led by its leasing and hire purchase facilities. Leasing is the largest contributor to the company's loan portfolio accounting for 48.52% of its lending portfolio.

The veteran financier said that the results assume significance considering the fluctuating and unfavourable conditions that prevailed in the market.

Deposits, the chief indicator of a finance company's standing in society showed growth accumulating Rs. 38.74 billion, a 42.58% increase over the previous year's Rs. 27.17 billion."What has been most gratifying is the continued confidence investors place in LB Finance," he said.

Vallibel One, a diversified holding company with strategic investments, has a 51% stake of LB Finance. As per the audited financial statements filed at the Colombo Stock Exchange (CSE) for 2012/13, the company had a steady growth in the asset base of 27.17% despite fluctuating and unfavourable market conditions.

The Statement of Financial Position, Statement of Comprehensive Income, Statement of changes in Equity and Cash Flow Statement as at March 31, 2013 and for the year ended, have been prepared in accordance with Sri Lanka Accounting Standards comprising of Sri Lanka Financial Reporting Standards (SLFRSs) and Lanka Accounting Standards (LKASs) laid down by the Institute of Chartered Accountants of Sri Lanka and in compliance with the requirements of the Companies Act No. 07 of 2007.